GROUPAMA / 2018 Registration document

7 FINANCIAL STATEMENTS

STATUTORY AUDITORS’ REPORT ON THE CONSOLIDATED FINANCIAL STATEMENTS

Evaluation of the reserve for increasing risks (Long-term care) (Please refer to Notes 3.12.2 and 25.1 to the consolidated financial statements) Identified risk Implemented procedures

A reserve for increasing risks is established for insuranceoperationson risks of loss of autonomy to cover the temporary differences existing between the periodof application of the cover and its financingby insurance premiums. Thisprovision is madeprospectively, comparing the futurecommitments of the insurer and those of thepolicyholder. The regulations do not specify all the parameters to beused(in particular, biometric laws and discount rates) for thecalculation of this reserve. At 31 December 2018,thereserve for increasing risks was €273 million gross of reinsurance in the consolidated accounts. We considered this topic as a key pointof theaudit dueto thesensitivityof the calculation of the reservefor increasing risks to thechoice of the following key assumptions thatrequire a significant degreeof judgement frommanagement: discount rate; ❯ biometric laws developed based on bservations and analysesbased on ❯ portfolio data.

We conducted a critical review of the procedures for implementing the methodology for determining thereservefor increasing risks and implemented, in particular, the following audit procedures: examine thedesignof theactuarial model to verify that it doesnot ❯ contain any anomalies thatcould distort the amount of the reserve calculated through, in particular, theassessment of the reserve calculation environment; prepare our own estimation independently; ❯ assess theconsistency of thekey assumptions used todetermine the ❯ reserve,whichincludes: theprinciples andmethodology of the discount rate andtheanalysis ■ of thesensitivityof thereserve for increasing risks in the context of low rates, therelevanceof themethodology for calculating biometric laws and ■ theiradequacy for theportfolio.

VERIFICATION OF THE GROUP INFORMATION GIVEN IN THE MANAGEMENT REPORT

In accordancewith the professionalstandardsapplicable in France, we also conductedthe specific verificationsrequired by the applicable laws and regulations of theGroup information presented in themanagement reportof the Board of Directors. We haveno mattersto report as to its fairpresentation andits consistency withthe consolidated financialstatements.

INFORMATION RESULTING FROM OTHER LEGAL AND REGULATORY REQUIREMENTS

Designation of the statutory auditors We were appointedstatutoryauditors of Caisse Nationalede RéassuranceMutuelleAgricoleGroupamaby the General Meetingof 25 June

1999 for PricewaterhouseCoopers Audit and 12 September 2000 for Mazars. At 31 December 2018, PricewaterhouseCoopersAudit was in the 20

th  year of its mission without interruption, and Mazars was in its

19 th  year.

RESPONSIBILITIES OF MANAGEMENT AND MEMBERS OF THE CORPORATE GOVERNANCE BODY CONCERNING THE CONSOLIDATED FINANCIAL STATEMENTS Management is responsible for preparing consolidated financial statements presenting a true and fair view in accordance with IFRS as adopted in the EuropeanUnion and implementingthe internal controls that it deems necessaryfor the preparationof consolidatedfinancial statements free ofany material misstatements,whether they dueto fraudor error. In connection with the preparation of the consolidated financial statements, Management is responsible for assessing the Company’s ability to continue its operations; providing information on matters relating to the continued operations, where this is relevant; and for preparing financial statements based on a going concern basis, unless Management intends to wind up the Company or discontinue operations. The Audit and Risk ManagementCommittee is responsible for following the process of preparing financial information and for monitoring the effectiveness of internal control and risk management systems, as well as, where applicable, internal auditing, as regards the

procedures relatingto the preparation andprocessingof accounting andfinancial information. These consolidatedfinancial statements havebeen approvedby the Board ofDirectors.

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REGISTRATION DOCUMENT 2018 - GROUPAMA ASSURANCES MUTUELLES